PRODUCT FEATURES(HKTDC Electronic Components & Parts, Vol 01,2001)

New Chips, New Purposes

Integrated Circuits

VERSATILE
chip manufacturers based in Hong Kong produce ICs for numerous consumer products,
ranging from mobile telephones to toys. As new uses for these critical components
continue to develop, Hong Kong companies are moving into more innovative areas
to fulfil customers' needs.

Solomon Systech Ltd, a Hong Kong-based spin-off from Motorola, specializes in
designing and producing flat-panel-display chips. The company offers more than
20 models, including LCD drivers and controllers for use in mobile phones, personal
digital assistants and pagers.

Established in mid-1999, this ISO 9001-certified enterprise produces more than
2m chips per month for sale worldwide at prices of US$2-8 per piece FOB Hong
Kong. Minimum order is 500 pieces, with delivery nine weeks after order confirmation.

Solomon produces standard chips and custom-designed models at factories in Taiwan,
the Chinese mainland and South Korea. The Solomon brand is stamped on all its
products.

Solomon's ICs are among the smallest available. "Since mobile phones and
other devices are becoming smaller, companies want smaller chips. The ones we
make have a width of about 1mm," says product marketing manager Vincent
Wong.

In November, Solomon launched a multi-line addressing series of chips offering
"better display quality, faster response times and better contrast",
Wong says. These sell for US$7 per piece FOB Hong Kong, or US$15-20 per three-piece
set.

Chips that signal LED controllers to flash a light are a mainstay for Bowin
Electronic Co. This eight-year-old firm makes LED flashers for mobile phones,
bicycle lamps, key-chains, pens, watches and toys.

"We have more than 50 types of chips, most of them for LED controllers,"
says Bowin sales manager Esmond Chow.

The company also makes chips for use in kitchen timers and other home appliances,
melody generators, sound-effects chips and Christmas-light controllers.

About 70% of the 1m chips Bowin produces each month are standard models, with
the rest custom-made. Standard models all carry one of the firm's four brands
?CDT, UM, HT or M3. Most production is sub-contracted to two factories in Taiwan.
Prices range from US$0.03-0.40 per piece FOB Hong Kong, and minimum order is
1,000-2,000 pieces.

The company exports to customers worldwide while also selling to Hong Kong firms.
"We have a large inventory of standard sizes so we can ship those immediately,"
says Chow. Custom-made chips are delivered two months after order confirmation.

New chip products under development include models for a car-parking timer and
a pet feeder. "The car-park timer would remind you to put more money in
the meter at different intervals. The pet feeder would automatically release
food to caged animals, like hamsters, or to fish," explains Chow.

Both models will be available in the first quarter of 2001.

Guidy Int'l Ltd's ICs for calculators, watches and telephones are imported semi-finished
from Russia and sent for backline processing at the company's factory in Shenzhen
on the Chinese mainland.

Guidy produces 10-15 models, including six for different types of calculators.
"About 25% of the 40m chips we make each month are for calculators,"
Wong says. All carry the Angstrem brand. Minimum order is 1,000 pieces, with
shipments going out 20-30 days after order confirmation.
The company sells primarily to Hong Kong, Taiwan and the Chinese mainland. "We
are looking for more markets. We're waiting for the Russian factory to expand
production and for further improvements in technology," Wong adds.

Last June, Guidy began producing LCD drivers that sell for US$0.10-1 FOB Hong
Kong. "We make 50,000 per month now, and hope to increase that to 200,000,"
Wong says.

The company also aims to increase its range of ICs. "We are going to introduce
five new chips for consumer electronic products in the second quarter of 2001,"
Wong explains.

"We have more than 10 models, and we sell worldwide," says the 11-year-old
company's managing director Richard Hung. These are priced from US$0.15-100
per piece FOB Hong Kong. Minimum order is 1,000 pieces, with delivery within
12 weeks.

Private-label and OEM work accounts for most of the company's orders, although
25% of E-Sun's chips bear the company's own SMT brand.

Next on E-Sun's agenda are plans to develop chips for DVDs and mobile phones.

All Is Well If Connected Well

Cable & Connectors

ALL
over the world, cables and connectors are in high demand to keep the electronic
equipment so important to modern life operating smoothly. Hong Kong suppliers
can tailor-make such components for use with all types of electronic consumer
goods.

At a 20,000-square-metre, 400-worker factory in Dongguan on the Chinese mainland,
the company produces 3 million-10 million items per month. The raw materials
include PVC, copper, nylon and brass from Japan, Taiwan, South Korea, the Chinese
mainland and elsewhere. Unit prices range widely from HK$0.15 (US$0.02) to more
than HK$100 (US$12.82) FOB Hong Kong.

"Our service is good. We are fast in quoting prices and producing samples.
We have good technical support," Wong says.

Tailor Tech exports mainly to Turkey, the Netherlands, Spain and the US. There
is no minimum-order requirement, and delivery takes 2-4 weeks after order confirmation,
depending on the products. Some items carry the Taylor brand.

"The factory is supported by a team of engineers and technicians dedicated
to enhancing production efficiency and improving production equipment. This
team carries out research and development activities," Chow says.

"Incoming raw materials are checked by a team of inspectors. Even finished
products must undergo a final random quality test. This is to ensure all products
meet customer specifications and recognized safety standards," Chow notes.

Established in 1988, Walex requires a minimum value of US$5,000 for overseas
shipments, and the usual lead time is 2-4 weeks. Leading markets include the
US, Japan and the Chinese mainland.

Kengo Development Ltd produces curved electric lines, cables, PU/PVC electric
cords for adaptors and chargers, and signal/communication lines for telephones,
communication devices and earphones. Each month the company makes 20 million
metres worth of such products at its 2,500-square-metre factory, employing more
than 200 workers, in Dongguan.

Company representative Alex Chan says the raw materials include PU, PVC and
copper wire from Taiwan, Japan, the Chinese mainland and other origins. "Everything
depends on the customer's needs," he adds.

Founded in 1997, the company applies a minimum order of 50,000m. Normal lead
time is about two weeks, but varies depending on quantity.

Under the Katai brand, Kengo sells to customers in Southeast Asia and Hong Kong.
The cables and connectors cost from "several tens of cents to several dollars"
in Hong Kong currency FOB Hong Kong, Chan says.

Lick Kan Electrical Co makes AC cords, DC wires, television cables, audio/video
cables and network cables. These are used for an assortment of consumer items,
such as electrical appliances and computers.

"The materials come from Japan, Hong Kong and Taiwan, the latter being
the main source. For example, some of the special PVC we use is from Taiwan,"
says Lick Kan proprietor Yau Kwong-yiu.

These products can carry any customer's logo. "Customers can simply give
us their specifications, and we'll design for them, or they can give us their
own designs," Yau adds. The minimum order is usually 5,000 units per style.

Lick Kan delivers goods about 20 days after receiving a letter of credit. The
company exports mainly to Europe, notably the Netherlands, Spain, Germany, Sweden,
Norway and Greece.

Avoiding Shocks & Shedding Light

Fuses & Bulbs

WHILE
designs remain unchanged in the fuse market, Hong Kong manufacturers are increasing
production outputs and striving for full quality approvals to attract buyers.
Meanwhile, light-bulb makers aim to expand their markets to persevere in competition
with LED producers.

Close cooperation with a Swiss-based head office led to success for Hong Kong's
Chi Lick Schurter Ltd, says sales manager Audrulee Leung. Founded in 1933, the
Schurter group has 12 subsidiaries and 100 distributors.

"We have an engineering team in Switzerland, and we call them daily. Twenty
years ago, two of our staff members studied fuse design in Switzerland, and
they still pass on knowledge to our younger staff,"Leung says.

The 36-year-old Hong Kong subsidiary's output also encompasses power-entry modules,
circuit breakers and input systems. Delivery time to global markets is 45-60
days, and there is no minimum order.

Fuses, fuse clips, fuse holders, fuse blocks and thermostats are on offer from
25-year-old Hollyland Co Ltd. Among the company's glass, ceramic and micro fuses,
the latest models are 20N and 50T. The 20N is a 2.4x6.8mm fast-blow micro fuse
with UL, CSA and T-Mark approvals and FOB Hong Kong priced at US$0.08-0.10.
On the other hand, 50T is a 5.2x20mm time-lag glass fuse with lead wire, meeting
CCEE, SEMKO, IMQ, VDE, B, BSI, UR and CSA approvals. The FOB Hong Kong price
is US$0.04-0.08. While 20N is designed for computer monitors, 50T goes into
most electronic products.

Knowing which materials should be of high quality is essential, says Hollyland
director Sharon Wong. Most of the company's materials come from Taiwan, but
for element wire, Wong turns to Germany. "It is more expensive, but the
quality is reliable,"she says.

Each month Hollyland produces 15 million fuses and strives for more, as demonstrated
by a recent decision to rent a 1,800-square-metre site, in addition to the company's
existing 1,700-square-metre factory in Xiamen on the Chinese mainland. Hollyland
employs 450 workers, serves global markets and applies a 10,000-piece minimum
order, with delivery times of 21-42 days.

Sun Electric Co is also increasing production, says assistant general manager
Alex Yuen. This 10-year-old company makes 7.5 million micro and miniature fuses
per month, while striving toward full capacity of 10 million.

The company's quick-acting glass and ceramic fuses come in sizes of 5x20mm,
3x7mm and 6x32mm. Its latest models are 3QP and 3FP, FOB Hong Kong priced at
US$65 and US$80 per 1,000 pieces respectively. Both are micro fuses, meeting
UL and CSA approvals, for use in small electronic equipment.

Quality service is a major selling point. "We often give technical advice
to customers, advising them which types of fuses to use,"says Yuen.

Sun Electric's main markets are the US, Mexico, Taiwan and the Chinese mainland.
Minimum order depends on delivery destination and shipment method. Usual delivery
time is 14-21 days.

Turning to bulbs, Sunshine Bulbs Mfy has a range for flashlights, indicators,
bicycles, cycles and toys. Bayonet-style and screw-in flashlight bulbs, the
main category, can be vacuum type or filled with krypton, xenon or argon gases.
Oval, round and additional bulbs containing shoulder glass and tungsten wire
are available with standard lifetimes of 15 or more hours. The FOB Hong Kong
price for vacuum-type bulbs is US$283 per 10,000 pieces. Minimum order is 10,000-50,000
pieces, depending on bulb type.

Sunshine's main markets are in Europe, the US, Argentina and India, with delivery
time of 21-28 days.

"We plan to add Eastern Europe and more of South America to our network,"says
Sunshine director Addie Lee. This strategy is to fend off an onslaught of LED
products on the market.

Overseas business accounts for 40% of Sunshine's total sales. The remaining
60% goes to Hong Kong torch manufacturers.

Careful quality control is a major selling point. "The lifetime and light
output of bulbs are important areas so these are where we are most careful,"says
Lee.

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